RIL AGM 2023: Mukesh Ambani explains India's 'energy trilemma'; here's what it means

RIL AGM 2023: Reliance Industries Limited (RIL) chairman Mukesh Ambani on Monday explained India's 'energy trilemma' and said that his conglomerate was well positioned to offer practical solutions. Speaking at RIL's Annual General Meeting (AGM) 2023, Ambani said that the country, which imports over 80 per cent of its energy requirement, was facing three challenges - affordability of energy, sustainability of energy, and security of energy.

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"'Energy trilemma' demands actions to overcome three challenges. 1, affordability of energy - how to ensure that every citizen and every economic activity in India has access to adequate and most affordable energy; 2, sustainability of energy - how India can rapidly transition from fossil fuel-based energy to clean and green energy; 3, security of energy - how the expanding needs of a fast-growing Indian economy can be de-risked from geo-political rivalry, conflicts, and potential supply disruption."          

Ambani said Reliance's new energy and material businesses squarely address this trilemma. He said green energy was becoming affordable because its cost was already much less than those non-renewables and would come down further. Green energy is sustainable because the Sun and the wind are never going to disappear. "Green energy is secure because India will no longer be dependent on large-scale imports for energy needs," he said.

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"RIL is uniquely positioned to offer a practical solution to India's 'energy trilemma' – Energy Affordability, Sustainability and Security. RIL has a golden chance to enable India to transform from a net energy importer to a net energy exporter," Ambani added.

During the address, Ambani also talked about his conglomerate's gas business and partnership with British oil and gas company, bp. He said gas is a key transition fuel in India's quest for clean and sustainable energy. "With our valued partner bp, we have revived gas production from KGD6 Block (Krishna Godavari Dhirubhai 6) from near zero a few years back to about 20 MMSCMD (Million Metric Standard Cubic Meters per Day) in FY23," he said.

The billionaire chairman further said that RIL commissioned one of the most complex and cost-efficient deepwater projects – the MJ Field, in KGD6 Block. "This includes a state-of-the-art FPSO, which is among the largest and most complex in the world with a gas production capacity of 14MMSCMD."

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RIL has embarked on transitioning its O2C (oil to chemicals) business into a sustainable and green business, Ambani said, adding that the key pillars of this transition are – "One, we are accelerating our journey to achieve Net Zero by 2035 through renewables and bioenergy. Two, we are accelerating circularity and consumer integration. Three, with technology and innovation, our refinery at Jamnagar will be progressively operated as a 'chemicals and materials feedstock production engine'."